PT Majapahit Indonesia plans to purchase motion sensors that will be used in Smart technology Trash Monitoring as an effort towards the city of Bandung smart city. Estimated need for sensor equipment 50pc for Bandung City. There are 2 distributors of the sensor, namely CV Brahmana and CV Ramashinta. CV Brahmana provides a sale value of IDR 500,000 / pc, and the residual value at the end of the 5th year is IDR 75,000 / pc, while CV Ramashinta offers a selling value of IDR 490,000 / pc, and a residual value of IDR the end of the 5th year is IDR 100,000 / pc. By choosing a motion sensor from any manufacturer on the Smart Trash Monitoring, you will get an annual savings of IDR 25,000,000, but at a cost operational IDR 12,000,000 / year.

 If the annual rate of return is 10%, then bid which is should be selected? Use IRR

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